US equity market have experienced a subpar year. With approximately 2 weeks left in 2011, the S&P 500 index is lower by nearly 3%, while the Dow Industrials is unchanged. Despite the lackluster 2011, McDonalds has experienced a strong year up almost 35%.
During the month of December, the world’s No. 1 burger chain announced global November same-store sales rose 7.4% vs. a year earlier, led by China and Japan. Analysts expected 4.6%. McDonald’s same-store sales climbed 6.5% in both the U.S. and in its largest market, Europe. Comparisons rose 8.1% in the Asia-Pacific, Middle East and Africa division.
Shares of MCD continue to remain buoyed by the strong results. The company has a PE ratio of 19 and debt of 79%. Last quarter’s EPS showed a 12% increase while the 3 year EPS growth rate is 13%. Margins for the company are 29%, and the dividend yield is nearly 3%.
MCD is an attractive investment and is likely to continue to climb after a brief pause. Look for a close above resistance which should signal that the trend is continuing.
The trade – Purchase a daily binary option call on a daily close above $99.00.
Signal Summary
Asset : MCD
The trade : Binary Call Option
Expiry time : End of day
When : On a daily close above $99.00.
The result : In the money
